dr lidasan

City Logistics in theCity Logistics in the

Philippines: Issues,

Policies

Philippines: Issues,

Policies

and FutureDirections

inand Future

Directionsin

Intermodal Logistics

Network

Intermodal Logistics

Network

DevelopmentDevelopment

EGM on Urban Freight in BangkokEGM on Urban Freight in Bangkok2010 March 282010 March 28--3131

Hussein S. LIDASAN, Ph.D.Hussein S. LIDASAN, Ph.D.ProfessorProfessor

School of Urban & Regional PlanningSchool of Urban & Regional PlanningUniversity of the PhilippinesUniversity of the Philippines

OUTLINE OF PRESENTATION:OUTLINE OF PRESENTATION:

Concept of City Logistics and InitiativesConcept of City Logistics and Initiatives Characteristics of Intermodal LogisticsCharacteristics of Intermodal Logistics

Network System in the PhilippinesNetwork System in the Philippines City Logistics, Issues and Initiatives in the City Logistics, Issues and Initiatives in the

Philippines: Metro ManilaPhilippines: Metro Manila Comparative Assessment of City Comparative Assessment of City

Logistics Initiatives in Selected CitiesLogistics Initiatives in Selected Cities City Logistics in Maritime Subregional City Logistics in Maritime Subregional

CooperationCooperation

City Logistics is defined as:City Logistics is defined as:The process for totally optimizing logistics and The process for totally optimizing logistics and transport activities in urban areas while considering transport activities in urban areas while considering transport environment, traffic congestion and energy transport environment, traffic congestion and energy consumption within the framework of free market consumption within the framework of free market economyeconomyIt therefore aims to:It therefore aims to:

Allow the private shippers and freight carriers to Allow the private shippers and freight carriers to reduce freight costs, and reduce freight costs, and

Ensure that the public sector alleviates congestion Ensure that the public sector alleviates congestion and environmental and energy problemsand environmental and energy problems

ActorsActors

ShippersTransportService

Providers

Consumer Government

want the least possible time to market their

goods while minimizing storage levels resulting

in frequent deliveries

want the least possible time to market their

goods while minimizing storage levels resulting

in frequent deliveries

interested in the availability of goods

anywhere anytime, and improved quality of life

interested in the availability of goods

anywhere anytime, and improved quality of life

Regulates freight environment, balances market forces & plays

a major role in resolving conflicts

among actors

Regulates freight environment, balances market forces & plays

a major role in resolving conflicts

among actors

aim for minimum cost while

optimizing quality of their services

aim for minimum cost while

optimizing quality of their services

EconomicEconomic EfficiencyEfficiency To increase To increase productivity in productivity in transport operationtransport operation

To contribute To contribute towards economic towards economic

performanceperformance

EnvironmentalEnvironmental SafetySafety To reduce number To reduce number and severity of and severity of accidentsaccidents

To reduce environTo reduce environ--mental externalitiesmental externalities

InfrastructureInfrastructure Urban structureUrban structure To contribute to To contribute to preferred urban preferred urban structurestructure

To supply and To supply and manage adequate manage adequate

public infrapublic infra

Grouping of City Logistics ObjectivesGrouping of City Logistics ObjectivesGrouping of City Logistics Objectives

11

22

33

Grouping of Policy Measures related to City Logistics

Grouping of Policy Measures Grouping of Policy Measures related to City Logisticsrelated to City Logistics

TransportTransportFunctionFunction

Goods Handling Goods Handling FunctionFunction

InformationInformationFunctionFunction

NodeNode

LinkLink

ModeMode

OperationOperation

ControlControl

MarketMarket

11

22

33

44

55

66

Freight terminals Freight terminals (Distribution centers)(Distribution centers)

Road constructionRoad construction

Low emission vehicles, Low emission vehicles, Electric vehicles, etc.Electric vehicles, etc. Cooperative deliveryCooperative delivery

Truck ban, size/weight Truck ban, size/weight restrictions, allocation of restrictions, allocation of truck routes/lanes, etc.truck routes/lanes, etc.

Road pricingRoad pricing

OffOff--street loading and street loading and parking facilitiesparking facilities

OnOn--street loading and street loading and parking baysparking bays

Loading and parking Loading and parking time limitstime limits

Building ordinancesBuilding ordinances

Parking chargesParking charges

Road traffic info Road traffic info systemsystem

Parking guidance infoParking guidance info Vehicle tracking Vehicle tracking systemsystem Vehicle routing systemVehicle routing system

Cargo info systemCargo info system

Public and Private sector Policy Public and Private sector Policy measuresmeasures

Policy measuresPolicy measuresPublicPublic

Policy measures that compel private sector to change their actions to become more efficient

Policy measures that compel private sector to change their actions to become more efficient

Infrastructure devt, Distribution centers/

Truck terminals,Licensing and regulations,

Traffic management, Land use zoning, etc.

Infrastructure devt, Distribution centers/

Truck terminals,Licensing and regulations,

Traffic management, Land use zoning, etc.

PrivatePrivate

Measures implemented by private companies to

achieve efficiency (company-initiated)

Measures implemented by private companies to

achieve efficiency (company-initiated)

Cooperative delivery,Off-peak deliveries,Use of fuel efficient

trucks, Vehicle scheduling/routingsystems, Material

handling systems, etc.

Cooperative delivery,Off-peak deliveries,Use of fuel efficient

trucks, Vehicle scheduling/routingsystems, Material

handling systems, etc.

Infrastructure provisionInfrastructure provision RegulationsRegulations Economic measuresEconomic measuresPhysical/Physical/TransportTransport

InformationInformation RegulationsRegulations StandardizationStandardization PricingPricing SubsidiesSubsidies

Land useLand use Digital map, GPSDigital map, GPS Zoning for Zoning for logisticslogisticsactivitiesactivities

Property taxProperty tax

NetworksNetworks Ring roads, Ring roads, freight networksfreight networks

ETC, Road traffic ETC, Road traffic info systeminfo system

Truck route Truck route control, vehicle control, vehicle and time and time restrictionrestriction

Road pricingRoad pricing

TerminalsTerminals DistributionDistributioncenterscenters

Berth guidance Berth guidance systemsystem

Standards for Standards for intermodalintermodalterminalsterminals

Subsidies for Subsidies for cooperative cooperative facilitiesfacilities

ParkingParking OnOn--streetstreetparking spacesparking spaces

ParkingParkingguidance info guidance info systemsystem

CompulsoryCompulsoryparking spaces, parking spaces, Parking timeParking time

Parking charge Parking charge differentiationdifferentiation

Subsidies for Subsidies for offoff--streetstreetparking spacesparking spaces

Vehicles/Vehicles/ContainersContainers

Electric vehicles, Electric vehicles, Low emission Low emission vehiclesvehicles

Fleet mgmt Fleet mgmt system, Vehicle system, Vehicle and cargo and cargo matchingmatching

Emission control, Emission control, load factor load factor controlcontrol

Standardized Standardized containers,containers,electronic tagselectronic tags

Vehicle tax, fuel Vehicle tax, fuel tax,tax,environmental environmental taxtax

Subsidies for Subsidies for low emission low emission vehiclesvehicles

CargoesCargoes Cargo tracking, Cargo tracking, order entry order entry systemssystems

Subsidies for Subsidies for cooperative cooperative deliverydelivery

Logistics policies by the governmentsLogistics policies by the governments

Characteristics of

Characteristics of

Intermodal

Intermodal

LogisticsNetwork

LogisticsNetwork

System inthe

System inthe

Philippines

Philippines

Being an archipelagic country, the Being an archipelagic country, the PhilippinesPhilippines intermodal logistics system is intermodal logistics system is anchored on its anchored on its maritime transport maritime transport systemsystem, supported by:, supported by: A road network linking the ports to A road network linking the ports to

production areas, markets and logistics production areas, markets and logistics terminalsterminals

An air transport system with strategic An air transport system with strategic regional and local airportsregional and local airports

An informationAn information--based system for based system for documentation (CIQS)documentation (CIQS)

An intermodal transport system utilizing An intermodal transport system utilizing RoRo--ro networkro network

(1) Areas for International Gateway (2) Domestic Maritime Trunk Route (3) Land/Inter-modal Trunk Route

Maritime Trunk Maritime Trunk RoutesRoutes

Phili

ppin

e A

irpor

t Net

wor

kPh

ilipp

ine

Airp

ort N

etw

ork

Phili

ppin

eNa

tiona

lRo

adNe

twor

k

Phili

ppin

eNa

tiona

lRo

adNe

twor

k

Phili

ppin

eRo

Phili

ppin

eRo

--roSy

stem

roSy

stem

(Nau

tical

High

ways

(Nau

tical

High

ways

Grains HighwayGrains Highway

Corn Processing Facility in MindanaoGrains Terminal in Bukidnon

For rice and corn transportFor rice and corn transport Mindanao accounts for 70% of Mindanao accounts for 70% of

total corn production and 30% total corn production and 30% of total rice production of total rice production

Incorporates bulk processing Incorporates bulk processing and handling centers, trucking and handling centers, trucking and terminal facilities with grain and terminal facilities with grain silos, bulk grain handling and silos, bulk grain handling and bulk carriers bulk carriers

Provision of improved cold Provision of improved cold storage logistics for storage logistics for perishable items like fruits perishable items like fruits and vegetablesand vegetables Aggregating and processing Aggregating and processing

centerscenters Reefer transport (equipment Reefer transport (equipment

and vehicles)and vehicles)

Cold ChainCold Chain

Current issuesCurrent issues Lack of trip schedules atLack of trip schedules at

some Rosome Ro--Ro connectionsRo connections Increased waiting time of Increased waiting time of

passengerspassengers Risk of missing scheduled Risk of missing scheduled

tripstrips Limited capacities at new Limited capacities at new

RoRo--Ro routes and terminalsRo routes and terminals Arterial roads with average Arterial roads with average

total width of 6total width of 6--6.5 meters 6.5 meters (both directions)(both directions)

Increased side frictions (i.e. Increased side frictions (i.e. presence of developments presence of developments at road sides) at road sides)

Lack of berths at terminalsLack of berths at terminals

Origin Destination Trips/weekBatangas Calapan 235Calapan Batangas 224Roxas Caticlan 17

Caticlan Roxas 14Iloilo Bacolod 22

Bacolod Iloilo 24Dumaguete Dapitan 10

Dapitan Dumaguete 6Matnog Allen 245

Allen Matnog 217

Trip frequency at major Ro-Ro connections

Philip

pine

Regi

onal

Deve

lopm

ent F

orm

atio

n

Philip

pine

Regi

onal

Deve

lopm

ent F

orm

atio

n

Comparative Logistics Costs in the Comparative Logistics Costs in the PhilippinesPhilippines

ItemItem CostCostPowerPower 1010--25% of costs25% of costsLogisticsLogistics 2525--30% of costs30% of costsTelecommunicationsTelecommunications 5% of cost5% of cost

ActivityActivity % of Wholesale Price% of Wholesale PricePost Harvest ServicesPost Harvest Services 3.13.1 5.4 %5.4 %NonNon--Port HandlingPort Handling 3.53.5 10 %10 %Port ServicesPort Services 2.62.6 5.4 %5.4 %ShippingShipping 8.08.0 12 %12 %TruckingTrucking 7.0%7.0% -- 11%11%Total Transport Cost and Logistics Total Transport Cost and Logistics CostCost

24.224.2 43.8%43.8%

Source: Cash Crop Distribution Systems in the Philippines (JBIC,Source: Cash Crop Distribution Systems in the Philippines (JBIC, 2002)2002)

Source: Global Competitiveness Ranking (World Bank, 2006Source: Global Competitiveness Ranking (World Bank, 2006--07)07)

ExportExport DurationDuration(days)(days)

DurationDuration(days)(days)




DocumentsDocumentspreparationpreparation 99 1414 88 1010 11Customs clearance Customs clearance 22 22 11 22 11Ports and terminal Ports and terminal handlinghandling 33 22 33 33 11Inland transportation Inland transportation and handlingand handling 22 33 22 33 22TotalTotal 1616 2121 1414 1818 55

ImportImport DurationDuration(days)(days)





DocumentsDocumentspreparationpreparation 88 1515 88 99 11Customs clearanceCustoms clearance 33 44 22 11 11Ports and terminal Ports and terminal handlinghandling 44 66 22 22 11Inland transportation Inland transportation and handlingand handling 11 22 11 22 00TotalTotal 1616 2727 1313 1414 33

Source: World Bank Doing Business (2009)

Total number of days to process a container Total number of days to process a container (Export and Import)(Export and Import)

020406080

100120140160180200

Philip

pine

s

Indo

nesi

a

Thai

land

Mal

aysi

a

Sing

apor

e

US

Dol

lar

Export Import

0

50

100

150

200

250

300

Philip

pine

s

Indo

nesi

a

Thai

land

Mal

aysi

a

Sing

apor

e

US

Dol

lar

Export Import

0

50

100

150

200

250

Philip

pine

s

Indo

nesi

a

Thai

land

Mal

aysi

a

Sing

apor

e

US

Dol

lar

Export Import

0100200300400500600700800900

Philip

pine

s

Indo

nesi

a

Thai

land

Mal

aysi

a

Sing

apor

e

US

Dol

lar

Export Import

Customs Clearance Fee per Container Ports and Terminal Handling Fee per Container

Inland Transportation and Handling Fee per container

Total Cost to Import/Export per container

Source: World Bank Source: World Bank Doing Business (2009)Doing Business (2009)

Issues,Issues,Weaknesses &Weaknesses &

Concerns inConcerns inPhilippinePhilippineIntermodalIntermodal

Logistics SystemLogistics System

A. Key IssuesIssuesIssues SubstanceSubstance Actions to be TakenActions to be Taken

Philippines an archipelago Philippines an archipelago (consists of group of (consists of group of islands)islands)

Storage and movement of Storage and movement of raw materials and raw materials and agricultural products from agricultural products from sources to marketssources to markets

Air and Maritime SafetyAir and Maritime Safety

Lack of efficient Lack of efficient communications and communications and information systems at information systems at national levelnational level

Linkage among Linkage among communicationscommunicationscompaniescompanies

Traffic congestion in major Traffic congestion in major cities and regions, cities and regions, especially Metro Manila, especially Metro Manila, Cebu and DavaoCebu and Davao

* Linkage of the major islands has to * Linkage of the major islands has to be establishedbe established

* Completion and strengthening of the * Completion and strengthening of the National Transportation SystemNational Transportation System

* Lack of farm* Lack of farm--toto--market roadsmarket roads* Lack of areas to market products* Lack of areas to market products* Perishable goods (especially from * Perishable goods (especially from

agricultural areas) need to be agricultural areas) need to be maintained prior to deliverymaintained prior to delivery

* Country has experienced aviation * Country has experienced aviation and maritime disasters that and maritime disasters that resulted to loss of lives and resulted to loss of lives and economic loses economic loses

* A number of local cities and areas * A number of local cities and areas does not have efficient does not have efficient communications and info systemscommunications and info systems

* Telecommunications companies are * Telecommunications companies are not yet fully linked or integratednot yet fully linked or integrated

* Longer travel time* Longer travel time* Delay in distribution & movement of * Delay in distribution & movement of

goods and peoplegoods and people

* Develop efficient intermodal system * Develop efficient intermodal system connecting major islands w/ connecting major islands w/ integrated nodal pointsintegrated nodal points

* Develop and maintain country* Develop and maintain countryssarterial road systemarterial road system

* Develop farm* Develop farm--toto--market roadsmarket roads* Establish local market areas or * Establish local market areas or

transfer points for agri productstransfer points for agri products* Encourage establishment of * Encourage establishment of

delivery centers delivery centers * Review air and maritime safety * Review air and maritime safety

guidelinesguidelines* Enforce safety rules & regulations* Enforce safety rules & regulations* Continuously maintain and check * Continuously maintain and check

planes and vesselsplanes and vessels* Completion of municipal telephone * Completion of municipal telephone

system system * Urge companies to hurry up with * Urge companies to hurry up with

their integrationtheir integration* Complete transport and road * Complete transport and road

network systemsnetwork systems* Develop mass transit systems and * Develop mass transit systems and

implement TDM measuresimplement TDM measures

B. Weak PointsAreas of ConcernAreas of Concern GapsGaps Mitigating MeasuresMitigating Measures

1.1. Implementation of Plan or Implementation of Plan or ProjectProject

2.2. Coordination among Coordination among government agencies in government agencies in planning and planning and implementationimplementation

3.Expertise in the fields of 3.Expertise in the fields of logistics, information logistics, information systems and physical systems and physical distributiondistribution

4.4. Standardization and Standardization and normalization of operating normalization of operating systems and information systems and information systemssystems

5.5. Development of integrated Development of integrated container terminals at major container terminals at major portsports

6.6. ResearchResearch

7.7. Database systemsDatabase systems

* Lack of public investment on * Lack of public investment on infrastructure developmentinfrastructure development

* Too many agencies performing * Too many agencies performing the same planning and the same planning and implementation tasksimplementation tasks

** Lack of persons specialized in Lack of persons specialized in logistics and related fieldslogistics and related fields

* No formal education in logistics * No formal education in logistics and related specializationand related specialization

* Lack of an efficient and standard * Lack of an efficient and standard operation systems at freight operation systems at freight stations or (container) terminals stations or (container) terminals especially at other major portsespecially at other major ports

* Lack of standard system for * Lack of standard system for logistics information system logistics information system

* So far only the Port of Manila has * So far only the Port of Manila has an integrated container terminalan integrated container terminal

* Lack of studies related to * Lack of studies related to logistics, physical distribution logistics, physical distribution and information systemsand information systems

* Lack of standardized database * Lack of standardized database systemssystems

* Encourage private sector participation * Encourage private sector participation through PFIthrough PFI

* Initiate integrated planning and * Initiate integrated planning and coordination among agenciescoordination among agencies

* Initiate capability building in the fields of * Initiate capability building in the fields of logistics, IT &related fieldslogistics, IT &related fields

* Develop new courses &academic * Develop new courses &academic programs leading to these fieldsprograms leading to these fields

* Develop formal and non* Develop formal and non--formal training formal training programsprograms

* Experience at MICT be duplicated in * Experience at MICT be duplicated in other major ports, container termother major ports, container term

* Develop standardized information * Develop standardized information system for logistical purposessystem for logistical purposes

* Formulate master plan for devt of * Formulate master plan for devt of integrated cont term at key portsintegrated cont term at key ports

* Initiate studies through academic * Initiate studies through academic institutions and research centers institutions and research centers

* Integrate existing database sys.* Integrate existing database sys.* Develop database for logistics and * Develop database for logistics and

information system studies information system studies

City LogisticsCity LogisticsInitiatives inInitiatives in

the Philippines:the Philippines:

Metro ManilaMetro Manila

Philippine Intermodal Logistics Policy Philippine Intermodal Logistics Policy Objectives:Objectives:Local LevelLocal Level

Focused on reducing traffic congestion, alleviating environmentFocused on reducing traffic congestion, alleviating environmental and al and social impacts and improving the economic and technical efficiensocial impacts and improving the economic and technical efficiency of the cy of the transportation systemtransportation system

City Logistics InitiativesCity Logistics Initiatives

National LevelNational Level

Aimed at providing efficient intermodal transportation systemAimed at providing efficient intermodal transportation system

GlobalGlobal

Focused on how to improve the efficiency of moving people and fFocused on how to improve the efficiency of moving people and freights,reights,reducing the impacts of transportation on the global environmentreducing the impacts of transportation on the global environment andandproviding a global competitive tradingproviding a global competitive trading

Prioritized City Logistics Prioritized City Logistics Policy Objectives in Metro Policy Objectives in Metro

Manila:Manila:1.1. Efficiency and Economic Efficiency and Economic

ObjectivesObjectives2.2. Safety and EnvironmentSafety and Environment3.3. Infrastructure and Urban Infrastructure and Urban

StructureStructure

Transport Demand Management (TDM) Transport Demand Management (TDM) SchemesSchemes Traffic Volume Restraint MeasuresTraffic Volume Restraint Measures Truck Ban at major urban thoroughfaresTruck Ban at major urban thoroughfares

Application of ICT (e.g., ETC)Application of ICT (e.g., ETC) Land Use ControlsLand Use Controls Terminal DevelopmentTerminal Development Development of Economic and Industrial Development of Economic and Industrial

Zones at Urban FringesZones at Urban Fringes

Some City Logistics Initiatives in Some City Logistics Initiatives in Metro Manila:Metro Manila:

Formal policy documents on ICTFormal policy documents on ICT

JapanBasic Guidelines on the Promotion of an Advanced Info and Telecommunications Society, Feb 1995

Basic IT Law, Jan 2001

Law on Electronic Signatures and Certification Services, April 2001

IT Document Package Law, April 2001

E-Commerce Guideline, Mar 2002, etc.

KoreaBasic Law on E-Commerce, Feb 1999

Electronic Signature Act, Feb 1999

Consumer Protection in E-commerce, Jan 2000

Standard Terms and Conditions on E-commerce, Feb 2000, etc.

MalaysiaDigital Signature Act, 1997

Computer Crimes Act, 1997

Communications and Multimedia Act, 1998

ITS Strategic Plan, 2000

PhilippinesE-commerce Law, June 2000

ThailandElectronic Transactions Act, Dec 2001

National IT Policy Framework, Mar 2002

National ICT Master Plan, Sept 2002

Freight Transport Characteristics of Freight Transport Characteristics of Metro Manila:Metro Manila:

Primary Objective: Efficiency & EconomyPrimary Objective: Efficiency & Economy Underlying Problem: CongestionUnderlying Problem: Congestion Prioritized Measures: Road Links, TerminalsPrioritized Measures: Road Links, TerminalsInfo SystemInfo SystemMain Expected Effects: Costs, Reliability, Main Expected Effects: Costs, Reliability, CapacityCapacity Link: Road NetworkLink: Road Network Operation: OffOperation: Off--peak Deliveriespeak Deliveries Regulations: Truck RestrictionRegulations: Truck Restriction

Issues on Truck Ban in Metro ManilaIssues on Truck Ban in Metro Manilazz The truck ban is the most commonly used The truck ban is the most commonly used

vehicle restraint in developing countriesvehicle restraint in developing countrieszz Banning trucks is a very feasible form of Banning trucks is a very feasible form of

rationing scarce peak period road spacerationing scarce peak period road spacezz Government usually enforces truck restraints Government usually enforces truck restraints

so that public transit modes would not compete so that public transit modes would not compete for limited road spacefor limited road space

zz Viable measure during construction periods Viable measure during construction periods when road capacity is greatly reduced to when road capacity is greatly reduced to ensure better traffic movementsensure better traffic movements

zz Truck restrictions can present harmful effects if Truck restrictions can present harmful effects if not fully understoodnot fully understood

Truck Ban Truck Ban 11

(EDSA(EDSAonly)only)

6 AM to 9 PM everyday except 6 AM to 9 PM everyday except Saturdays, Sundays and Holidays. No Saturdays, Sundays and Holidays. No cargo truck shall be allowed to travel or cargo truck shall be allowed to travel or pass along EDSA.pass along EDSA.

Truck Ban Truck Ban 22

(10 major (10 major routes)routes)

6 AM to 9 AM and 5 PM to 9 PM 6 AM to 9 AM and 5 PM to 9 PM everyday except Saturdays, Sundays everyday except Saturdays, Sundays and Holidays. No cargo truck shall be and Holidays. No cargo truck shall be allowed to travel or pass along these allowed to travel or pass along these routes.routes.

Definition Definition of Cargo of Cargo

TruckTruck

Cargo truckCargo truck as used in the ordinance as used in the ordinance refers to motor vehicles, whether refers to motor vehicles, whether loaded or empty, having a gross loaded or empty, having a gross vehicle weight of 4,500 kgs or more, vehicle weight of 4,500 kgs or more, principally intended for carrying cargo.principally intended for carrying cargo.

Violation Violation and and

PenaltyPenalty

Any person who violates the provisions Any person who violates the provisions of this ordinance shall be punished by of this ordinance shall be punished by a fine of not less than 500 pesos but a fine of not less than 500 pesos but not more than 2000 pesos or by not more than 2000 pesos or by imprisonment of not less than 7 days imprisonment of not less than 7 days but not more than 30 days or both, at but not more than 30 days or both, at the discretion of the court.the discretion of the court.

Metro Manila truck banMetro Manila truck ban

Caloocan (North)

Valenzuela Malabon Quezon City

Caloocan(South) Marikina

San Juan Manila Mandaluyong

Pasig Makati Pateros Pasay Taguig

Paranaque

Truck Ban Hours:Truck Ban Hours:6 AM 6 AM 9 PM9 PM6 AM 6 AM 9 AM; 5 PM 9 AM; 5 PM 9 PM9 PMAlternate route from Port Area to OutsideAlternate route from Port Area to OutsideAlternate route from Outside to Port AreaAlternate route from Outside to Port Area

1.1. Changes in truck operating characteristicsChanges in truck operating characteristicszz shortened delivery schedules; reduced delivery hoursshortened delivery schedules; reduced delivery hourszz reduced quantity of products delivered during banned hoursreduced quantity of products delivered during banned hourszz increased travel timeincreased travel time

2.2. Reduced truck delivery frequencyReduced truck delivery frequencyzz decreased truck trip frequency per day decreased truck trip frequency per day

3.3. Reduced production efficiencyReduced production efficiencyzz decreased rate of production due to delays in delivery decreased rate of production due to delays in delivery

schedulesschedules

4.4. Increased transport costsIncreased transport costszz increased costs due to poor productivity are passed on to increased costs due to poor productivity are passed on to

consumersconsumers

Economic impacts of truck banEconomic impacts of truck ban

zz A Probit Study indicated that the A Probit Study indicated that the likelihood of accidents increases when likelihood of accidents increases when the truck driver:the truck driver: operates a traileroperates a trailer--trucktruck has insufficient sleephas insufficient sleep performs nighttime deliveries performs nighttime deliveries has no complete knowledge of the has no complete knowledge of the

truck ban ordinance, andtruck ban ordinance, and violates truck ban rulesviolates truck ban rules

zz Truck ban has significant impact on the Truck ban has significant impact on the likelihood of accidentslikelihood of accidents

Safety impacts of truck banSafety impacts of truck ban

Comparative

Comparative

Assessment of

Assessment of

City LogisticsCity Logistics

Initiatives inInitiatives in

Selected CitiesSelected Cities

Preference survey of expertsPreference survey of experts

ObjectivesBang-kok

Ja-karta

KL MaMa--nilanila

Shanghai

Seo-ul

Osa-ka

Tok-yo

Efficiency & Economic

0.327(2)

0.481(1)

0.258(2)

0.550(1)

0.500(1)

0.311(2)

0.097(3)

0.167(2)

Safety & Environment

0.413(1)

0.405(2)

0.637(1)

0.240(2)

0.250(2)

0.493(1)

0.570(1)

0.667(1)

Infra & Urban structure

0.260(3)

0.114(3)

0.105(3)

0.210(3)

0.250(2)

0.196(3)

0.333(2)

0.167(2)

Numbers in parenthesis indicate rank order of importance.

z Developed cities: priority on safety and environmental objectivesz Developing cities: priority on economic and efficiency objectives Bangkok & KL: priority on safety and environmental objectives due to

current severity of pollution and high accident rates

Weights of objectivesWeights of objectives

Source: A-LOG Study, 2004, Japan Institute of Highway Economics

Freight measure objectives for developing cities

0

0.1

0.2

0.3

0.4

Distrib.center

Road links Parking,L/U

Info system Freightregulation

Roadpricing

Freight measure

Infra Urban

Environment

Efficiency

Freight measure objectives for developing cities

Freight measure objectives for developed cities

00.050.1

0.150.2

0.25

Distrib.center

Road links Parking,L/U

Infosystem

Freightregulation

Roadpricing

Freight measure

Infra Urban

Environment

Efficiency

Freight measure objectives for developed cities


Freight transport characteristics of cities


Impedances that City Logistics can Address Impedances that City Logistics can Address related to Maritime Logistics in Urban Areas:related to Maritime Logistics in Urban Areas:

Landside access to seaports: Landside access to seaports: Inadequate landside infrastructure can incur additional Inadequate landside infrastructure can incur additional

costs because of: costs because of: damage to goods damage to goods higher maintenance and repairs to motor vehicles higher maintenance and repairs to motor vehicles congestion causing time delays in transit from site to congestion causing time delays in transit from site to

site, impacting on quality and potentially generating site, impacting on quality and potentially generating public safety issues for perishables public safety issues for perishables

weight restrictions dictating the need to carry loads weight restrictions dictating the need to carry loads smaller than the vehiclesmaller than the vehicles capacity s capacity

safety risks to users and the community safety risks to users and the community insecure cargo from use of smaller, open vehicles insecure cargo from use of smaller, open vehicles

Source: AusAid East ASEAN Initiative Maritime Logistics Pilot (EAI MLP), 2009

Additional Issues related to Maritime Additional Issues related to Maritime Logistics in Urban Areas City Logistics in Urban Areas City Logistics can Address::Logistics can Address:: Imbalance in cargo movements/flows Imbalance in cargo movements/flows Low port handling productivity Low port handling productivity Limited space for port expansion Limited space for port expansion Storage: Container depots; transit Storage: Container depots; transit

storage; cool/cold storage storage; cool/cold storage Lack of integrated regional transport Lack of integrated regional transport

planningplanning Tariff misalignmentTariff misalignment


KEY ISSUES AND THEIR IMPACT ON EXPORT PERFORMANCE IN EASTERN INDONESIA AND SOUTHERN PHILIPPINES


EAI Strategies where City Logistics can EAI Strategies where City Logistics can help in addressing Identified Issues:help in addressing Identified Issues:

Develop integrated port and logistics sector Develop integrated port and logistics sector policy and planningpolicy and planning Identify hub ports, key feeder ports and local Identify hub ports, key feeder ports and local

ports: include among the feeder ports fishing ports: include among the feeder ports fishing ports in Eastern Indonesiaports in Eastern Indonesia

Tailor investment in facilities and equipment to Tailor investment in facilities and equipment to support these defined rolessupport these defined roles

Protect or secure land for future development Protect or secure land for future development of port and port related facilitiesof port and port related facilities

Identify port access roads and other common Identify port access roads and other common user logistics facilitiesuser logistics facilities

City Logistics can help in City Logistics can help in --Developing a Developing a seamless and sustainableseamless and sustainableLow Carbon Intermodal Logistics Network Low Carbon Intermodal Logistics Network that will support efficient flow of urban that will support efficient flow of urban freight movements in freight movements in greengreen developmentdevelopmenteconomieseconomies

Reverse LogisticsReverse Logistics Green LogisticsGreen Logistics Urban LogisticsUrban Logistics

Hussein S. Hussein S. LidasanLidasan,, [email protected]@up.edu.ph

[email protected]@yahoo.com